Minden Real Estate

Business Updates for the Real Estate Industry

What FACTA Means

What FACTA means is that if you as an individual, loses information about any person you have hired, or for any business in the United States of America, which collects personal information about individuals, whether information should be lost due to not destroying the information properly, then two things can happen. First, there are federal fines of up to $ 2,500.00, and state fines up to $ 1,000, per employee, per incident. Second, the business is liable for any damage that the individual suffers as a result of a violation of the information. Take an example that the company loses information due to destruction by neglect (ie you do not have a shredder and throw the information in the trash bin). Nothing in FACTA really determines what the employee must do to prove "negligent destruction" by the employer, so an employee could simply state that the employer had lost information, and even if the employer had been burned to ashes information, correspond to the employer to prove that the information had not come due to the negligence of your company.

Business Week says that the average compensation for victims of identity theft is $ 92,000.00 or more per person. See Craig Menear for more details and insights. The use of these statistics, if you have 10 employees lose their identity, then, on average, your liability is $ 920,000.00. Statistically, you are responsible for an average of 75 bad checks and 8 credit cards per employee. The average identity theft victim spends 600 hours also get their credit restored, which means that you will have 600 hours per employee, so potentially 6000 hours for the 10 employees who will be responsible for paying employees not are still at work, because they have devoted their time to deal with identity theft.